In making the basic analysis of merchandise trade, we look at economic factors, including crop yields, weather, oil extraction, or new technologies open up new mines, and so on. Basically, you have to take into account all factors affecting supply and demand.
In contrast, technical analysis is a mathematical manipulation by mapping variables such as price, volume, etc. but in areas such as weather and crop yields, essentially rendering mathematical formulas look at specific factors. The future price to protect the most important part of the real market activities in the recent past.
You can predict the analysis of these different types have their supporters and detractors. It consists of two schools of thought. Two schools agreed that the best forecast was broad-based, rather than the certainty of the possible outcomes and analysis. In a sense, technical analysis there is a variable, hoping advantage.
Multiplied by the average times the expected victory of the probability of winning. Then, subtract the probability that the loss of time the average loss.
Novice traders, you can also use this tool to a powerful trade. For example, suppose you have marketable job skills, only 30% of the time, to an average of 10% of trading profits. Their average loss of three investments, the amount or $ 10,000%.
Therefore, the equivalent average profit. 10 10,000 yuan, breaking through 1,000.
Their average loss is comparable. 031 million people, which amounts to $ 300.
Therefore, the formula is like this, the letter "E stands for" hope "":
é = (0. 30 × $ 1,000) – (0. 70 × 300 million) = $ 300 – $ 210 = 90.
Thus, while there are more losses than it had gains still see 90 dollars, last year's net profit. Although not a big harvest, is still a matter, rather than losses.
Basically, I want to do, and hope is to make your entire year's work in orbit, the successful long-term goal.
While the novice trading often focus on the number of operations on the highly profitable expensive mistakes, the most important is that its net profit over time. Hope that we can help you calculate and keep this in mind.
Stocks in these industries who always consider whether there is a better long-term or short-term trading, if you are a newcomer or a non-professional day traders may even be underestimated. However, if the commodity trade, the opposite is true. Short positions are generally better than the long run, even for those who are relatively inexperienced.
If you are a professional trader, you know, you have to accept defeat, occasionally. For non-professional operators, this may be difficult. Typically, non-professional traders to keep "" to0 long, because I hope that things will get better, you can still make a profit, or at least minimize their losses. In fact, this is in many cases of stock occur. However, the product is different. The opposite is true in general.
In short, the longer you stay locked in one position, rather than with, in particular capital can make money capital. If you play your employment rights, you can even make up for past losses. You also have to admit, although there may be no one correctly predict 100% of the time.
You should also note that most of the commodities arise because traders trading futures or options contracts. Therefore, only a limited time, usually for one year or less, making a decision. As the contract expiration date approaches, more and more easy to get lost, rather than a specific product, you hold increases.
If you like high-risk, fair trade products for your things. It's fast-paced and volatile. If your research and use of existing tools, is unlikely to succeed long-term. And must be as a tool of hope. Too many people overlook this very important tool that can help you become a winner.

Tags: analysis, commodities, Expectancy, mathematical manipulation, novice traders, quot, Technical, Trading